Why does it cost so much to visit the dentist?
Let's examine "back of the envelope" cost estimates for a dentist to provide care to a patient with a toothache. The services in this example include a single tooth x-ray and examination by the dentist. A typical fee for these procedures is $80.
Variable costs
$ 2 Labor costs to sterilize and prepare the room and dental instruments
$ 3 Consumable costs including x-ray film, bibs, gloves, etc.
$12 Labor costs for dental assistant duties during the visit
$ 5 Administrative costs for scheduling, records, prescription management, referral management, and billing
$20 Labor costs for a dentist paid market wages to devote 15 minutes to examination and record keeping
$42 Total variable cost
A typical fee for a single tooth x-ray and emergency exam is $80, which leaves a variable profit of $38. However, the variable profit of the practice needs to cover fixed costs of the dental practice before the practice generates a true profit.
Fixed costs
Rent
Utilities
Dental equipment including dental chairs, lighting, sterilization units, and dental instruments
X-ray unit
Computers and software
Compliance costs including OSHA, HIPAA, and state professional licensing
After accounting for all the costs incurred by the dental practice, one can better understand why a dentist would charge $80 for 10 minutes of face time.
